ECONOMIC GOALS

FOR RURAL

COMMUNITIES

Environmental activists have been quite explicit about their objectives for a sustainable ecosystem. On the other hand, our Chambers of Commerce have been vague on their overall target. In the absence of this input, let me suggest what specific economic goals for the southeastern Alberta and southwestern Saskatchewan could include:

• achieving full employment in the regional economy
• using renewable resources at a sustainable rate
• investing profits from non-renewable resources in sustainable enterprises
• adding the maximum value to these resources within the region
• using the market system to send signals to businesses of all types
• gradually reducing the subsidies and hidden costs that distort the market
• introducing payments to landowners for ecological services they provide
• ensuring the emerging renewable energy industry brings local benefits

Notice that the term "growth" does not appear. Growth for its own sake will inevitably lead us to an unsustainable level of resource use. Instead, the focus must be on efficiency; using each resource to provide the maximum benefit. To be sure, the Great Plains has many valuable resources, but these rarely generate the maximum impact. Raw materials, from oil to wheat, are shipped out of the region for further processing. A strong regional position could reduce this.

We should ask our elected leaders to enthusiastically endorse the goal of a sustainable economy, help them work toward it, and then enjoy the prosperity that will result.

Palliser's Country supports many of the existing economic stimulation programs. In particular, we hope to develop strong ties with Northern Great Plains Inc., "a network of business, academic and policy leaders working together to build a strong economic and healthy ecological future for the people and communities on the Northern Great Plains of North America."

We believe that programs to build a stronger economy begin in the community. To help local people achieve the skills and knowledge to facilitate this process, Simon Fraser University's Community Economic Development Centre has assembled an extensive web site on this topic. This link will take you directly to free, on-line exercises, but other parts of this site have extensive background material, links and case studies.

Present Situation

Like other aspects of North American society, the economy of the Great Plains is changing rapidly. Those farmers dependent on cereal crops have seen their returns dwindle as their input costs rise. This cost-price squeeze has caused many farmers to leave the business, and their land becomes consolidated into ever-larger holdings. Marginal crop land has been gradually converted to tame pasture, reflecting the generally better returns with livestock.

Some rural areas have seen an influx of non-agricultural residents, and many farm-based people have taken jobs off the farm. But overall, the result has been transferring an urban perspective to the rural areas, not the reverse.

People living in rural areas have the same basic needs as urban residents, and will have a similar diversity of economic status. Some farmers own a quarter-section, and others have the best part of a township, just as some businessmen have a couple of employees, and others have hundreds. It is my impression that farmers and ranchers are not so much concerned with economic disparity as they are with built-in barriers to the viability of their industry.

New Directions for Farmers and Ranchers

Ranching is one way to add value to cereal crops. Extensive grazing on native range during the summer and fall can be followed by winter feeding of grains grown on nearby cropland. Spring grazing on tame pasture can reduce the pressure on the native grasses. Together, this system maximizes the benefits of each resource. When feedlots and meat packing plants are set up locally, a full industry is the result. "Branding" the meat (not just the animal!) will enable ranchers to emphasize the product's high quality while receiving premium prices. Of course, this must be justified by high standards of range and waste management as well as animal husbandry.

We have heard the old saw - farmers buy retail, sell wholesale, and pay the freight both ways. It's generally true! But do we also know people who continue to plant wheat when it loses money each year? This doesn't make sense, either! Our society has a disconnect between the products we want, and the products that are being produced.

On the one hand, that part of the world with money has a glut of cereal crops, and the price has understandably dropped. On the other hand, the majority of our population has expressed a strong desire for non-agricultural products of the land, such as clean water and air, access for recreation, and abundant wildlife. These are all potential crops. We just need to agree on a price.

European countries make support payments based on the style of farming rather than the actual production. Whatever the process, any government input should be directed to activities that help support the social, economic and ecological goals, not activities that degrade them.

The natural landscape also has great potential to bring economic benefits. Across North America, those regions that take pride in their environment also flourish economically. Businesses locate where the quality of life is high. With some positive messages, the Great Plains could attract many outdoors-oriented people. In certain areas, the re-establishment of bison as wildlife, supported by elk, pronghorn and other animals, will build on the current eco-tourism market.

Tourism has been suggested as a new industry, although it has a reputation for low-paying jobs. To a certain extent, this is because the businessmen have focused on food and accommodation, which require considerable numbers of unskilled people. The entrepreneur that aims at the up-scale market with well trained tour guides or other unique services will do quite well.

In one sense, the fledgling agri-tourism market is a first attempt to define what rural experiences are worth. It seems that for some people, rural products are quite valuable, as this segment of the tourism market is growing very quickly.

It would be utopian to think that these changes will come quickly. However, I do believe that we should start discussing these new approaches with landowners and governments. In the mean time, farmers and ranchers are being encouraged to diversify their operations as much as they can. New crops, new ways to market their crops, and adding value to traditional crops are just some of the options.

Modern highways and communications have allowed non-agricultural businesses to flourish far from cities. Well-known lures such as low taxes and low land prices allow some smaller centres to attract a variety of enterprises. In the longer term, this approach sells short the real strengths of smaller communities, and does not encourage corporate involvement.

Shifting Emphasis in the Energy Industry

The sedimentary rocks of the Great Plains hold rich reserves of fossil fuels. Coal, natural gas and oil from this region are important to the future of both Canada and the United States.

The energy industry has had a mixed relationship with the landowners. The energy sector employs many local people, and in some jurisdictions, payments for surface rights have supported both farms and ranches through bad times. Still, ranchers are concerned with the loss of native grassland and the potential for weeds that the disturbance brings.

Overall, the industry has worked hard to reduce its impact on the landscape. The more progressive companies may even be ahead of the government regulators, and find themselves being held back by old rules.

Mitigation efforts vary considerably from place to place, though. It seems that no matter how stringent the requirements, oil and gas companies are still able to pay what is needed. Many jurisdictions could be expecting more from the companies.

New technology has brought new environmental concerns. Coal bed gasification and the injection of potable water into oil fields are just two areas that need more public discussion. Previous experience has shown that problems can be fixed for the most part, but the businesses may need to be motivated to find solutions.

Although oil reserves are declining, the supply of gas and coal seem sufficient to last decades, or longer. Fossil fuels are a non-renewable resource, though, and will eventually diminish. Profits from this resource should be used to jump start investment in renewable energy sources and other sustainable industries. Managed this way, even the non-renewable resource can bring long-term stability to the region.

Lester Brown describes the U.S. Great Plains as "the Saudi Arabia of wind power". The nearly constant breeze can now be harnessed economically, and several large wind farms are in operation. World-wide, the production of wind energy grew at 25% per year from 1990 to 2000.

The grassland region can play an important part in this emerging industry. However, the potential importance of this industry means that all concerns must be dealt with quickly. This industry has the potential to stimulate a strong alliance between urban environmentalists and rural landowners, but to achieve this, the landowners must benefit from generators sited on their land. Environmental and esthetic issues should be well mitigated so these relatively small problems do not overshadow the larger benefits.

Improving Local Investment

Many good ideas do not move ahead due to a lack of capital. Perhaps this happens more often in the grasslands than more populated areas. But surprisingly, this is not due to a lack of money. The average person would be amazed at how much money can be found in many small towns. However, federal regulations encourage people to invest their money in industrial regions, rather than close to home.

In Canada, many people put savings into Registered Retirement Savings Plans. The equity markets have also been popular over the last few years. Virtually all this money goes to support businesses that are already established. Even purchasing government bonds means sending money "down east".

We need to press our elected representatives to establish similar tax credits for money invested in local enterprises.

We can invest in the social aspect of our communities as well. Colleges and other educational centres should consciously aim at emerging fields like wind power, eco- and agri-tourism, sustainable resource management, and distance education. Our young people need to be ready to take on the new jobs for skilled workers. Many other social programs should also be considered investments, not expenses.

.

.